Question 1

How much can I borrow for a construction loan in Clovis?

Accepted Answer

Most lenders cap at 80% of completed appraised value, meaning you need 20% down plus reserves. We see loans from $300K to $2M+ depending on the project scope.

Question 2

What happens if construction runs over budget?

Accepted Answer

You cover overruns out of pocket or renegotiate the loan if equity allows. This is why we tell clients to budget 15-20% more than the builder's initial bid.

Question 3

Can I act as my own general contractor?

Accepted Answer

Some lenders allow owner-builder loans but require construction experience and stricter oversight. Expect higher rates and smaller loan amounts without a licensed GC.

Question 4

How long does construction loan approval take?

Accepted Answer

Plan on 30-45 days once you have signed builder contracts and approved plans. Lenders review blueprints, cost breakdowns, and contractor credentials carefully.

Question 5

Do I make payments during construction?

Accepted Answer

You pay interest-only on funds already drawn. Payments stay low until the build finishes and the loan converts to a standard mortgage with principal and interest.

Construction Loans in Clovis: Finance Your Ground-Up Build or Major Renovation